Multi-family
3,072 sqft. Interior
5,610 sqft. Exterior
4 Bathrooms
4 Doors
Property Location
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Disclaimer:
As experts in property purchasing, we offer consultations and detailed analyses of rental income properties. However, the images, financial projections, and examples presented are for illustrative purposes only and do not guarantee returns or the expected profitability. The configurations and features of the properties may vary. We strongly recommend that you consider our guidance, but also conduct your own research and due diligence before making any investment decisions. Trust our expertise, but remember that all investments carry inherent risks. You are solely responsible for your investment decisions. Your trust is our priority.
Comprehensive Financial Details
At Great Front Door, transparency is key. We want you to have a clear understanding of all costs associated with your property investment. Below, we break down the pricing for Rental Income Property to help you make an informed decision
FINANCIAL DETAILS
- Description Amount
- Listing Price: $ XX,XXX
- Cash Due at Closing
- Down Payment: $ 180,000
- Agent Fees: $ 27,000
- Mortgage Fees: $ 7,200
- 1st Year's Insurance: $ 9,000
- 1st Year's Taxes: $ 9,000
- Total Closing Costs: $ 232,200
- Renovation Cost: $ 200,000
- Mortgage While Renovating: $ 15,103
- Property Management Fees: $ 13,793
- Total Initial Investment: $ 461,096
- Investor Considerations
- After Repair Value (ARV): $ 1,842,667
- Equity after Renovation (EaR): $ 481,570
- Fix and Flip Max Price: $ 1,239,867
- Max. Cash Available from EaR eligible for Cash Out Refinance: $ 385,256
- Remaining Total Initial Investment after Cash Out Refinance: $ 75,840
RENTAL COMPARISON AND CASH FLOW
- Description Amount
- Monthly Income
- Avg. Monthly Rent ( 4 x 8-bed, 4-bath, 844-sqft rental unit): $ 3,448
- TOTAL Avg. Monthly Rent: $ 13,793
- Monthly Expenses
- Monthly Mortgage Payment: $ 5,034
- Monthly HOA (if any): $ 0
- Monthly Insurance: $ 750
- Monthly Tax: $ 750
- Monthly Maintenance: $ 750
- Monthly Property Management Fees: $ 1,379
- Total Monthly Payment: $ 8,664
- Monthly Cash Flow: $ 5,130
- Annual Cash Flow: $ 61,556
- Return of Investment In: 1 year and 2 months
HOW WOULD I RETURN MY INITIAL INVESTMENT?
- Initial Investment: To acquire this property with listing price of $XX,XXX.XX and maximize the rental potential of this property, you will need an initial investment of approximately $461,096. This includes closing costs totaling $232,200 which is a down payment of $180,000, agent fees of $27,000 and mortgage fees of $7,200. Initial investment also includes your renovation budget of $200,000 and mortgage payments during the renovation over 3 months totaling $15,103.
- After Repair Value (ARV): The property has an After Repair Value (ARV) of $1,842,667. The maximum price for a Fix and Flip is estimated at $1,239,867. After completing all renovation costs, the Equity After Renovation stands at $481,570. Since there is positive equity after the renovation, you can perform a Cash Out Refinance with your mortgage assuming the ARV and get 80% of this equity back totaling $385,256 in cash after the renovation. This shortens the original Return of Investment duration because the entire Initial Investment can be cashed out of the property after the renovations and Cash Out Refinance are complete.
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Rental Cash Flow:
There are 4 8-bed, 4-bath, 844-sqft units in this property that can be Rented at an average $3,448 per Unit per month, totaling $13,793 of monthly Rental Income, or $165,520 annually.
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Rental Unit/s: 8-bed with 4-bath Unit
Unit Name Rent Estimate Square Feet $ 3,095 900 $ 3,138 794 $ 4,112 838 Unit Details Unit Name: https://www.zillow.com/homedetails/1706-N-46th-St-APT-2-Seattle-WA-98103/2092968278_zpid/
Rent Estimate: $ 3,095
Square Feet: 900Unit Name: https://www.zillow.com/apartments/seattle-wa/amli-wallingford/5Yy56z/#unit-2078160405
Rent Estimate: $ 3,138
Square Feet: 794Unit Name: https://www.zillow.com/apartments/seattle-wa/the-cline/Cbv34X/#unit-2053220100
Rent Estimate: $ 4,112
Square Feet: 838 - Return of Investment: Since there is positive Equity after the Renovation, you can perform a Cash Out Refinance with your mortgage assuming the After Renovation Value of $1,842,667 and get 80% of the $481,570 in Equity back in cash after the renovation totaling $385,256. This shortens the original Return of Investment duration of 7 years to 1 year and 2 months because the entire Initial Investment of $461,096 which included Closing Costs, Renovation Budget and getting tenants in, can be cashed out of the property after the renovations and Cash Out Refinance are complete. With Total Monthly Expenses amounting to $8,664, including mortgage payments, taxes, insurance, and maintenance, you can anticipate a Monthly Cash flow of approximately $5,130, resulting in an Annual Cash Flow around $61,556 going forward.
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